About:-
Ginni Filaments Ltd was incorporated on July
28, 1982 as a public limited company. The company was established with the
objective of manufacturing cotton yarns. In September 1982, they obtained
certificate of commencement of business.
Located in Tehsil Chatta, Distt. Mathura,
Uttar Pradesh, GFL has consistently grown from one strength to another.
Installed capacity today stands at 60336 spindles with a capacity of 1000
tonnes per month.
In January 1998, GFL embarked upon an
ambitious expansion project by entering the arena for Open End Yarn. GFL has
1680 rotors with a capacity to produce 600 tonnes per month of open end yarn in
the count range of Ne 6 to 20. Products have been well accepted by buyers around
the world.
The company has also graduated into knitted
fabrics and installed 26 knitting machines from M/s. Terrot and Mayer to
produce Single Jersey, Interlock, Rib Terry and Lycra fabrics. Since April
2005, GFL has expanded into processed knitted fabrics. The complete machinery
have been imported from Thies & Santex. Ginni has started working with some
leading European brands and other global brands like Benetton, C & A, Allen
Solly, Van Heusen, J C Penny etc. The company obtained the ISO 9002 certification
as early as 1996 and also got the recognised as Trading house by the Govt. Of
India.
In order to get fully vertically integrated
and be present from fibre to fashion, Ginni Filaments Limited has entered
garment business with it's first unit in Noida in Sept. 2006, with a capacity
of 2,50,000 pcs per month. The capacity would be increased to one million pcs
per month in a phased manner.
The plant for spunlace non woven fabrics with
an installed capacity of 12,000 MT/p.a. which is the first of its kind in India
commenced production in March, 2007 in Panoli Industrial Estate, Gujarat.
Products/
Business Divisions:-
The company is engaged in the manufacture of
textiles, yarn, fabric, non-woven fabrics and garments. They operate in two
business segments, namely textiles and others. The other segments comprises of
consumer products, which include wipes made of spunlace fabric, which are used
in personal hygiene, healthcare.
The company’s products include cotton yarn,
non-woven fabrics, knitted fabrics and knitted garment. The company
manufacturing units are located at Chhata, Noida and Haridwar. They have
state-of-the-art spunlace non-woven fabric manufacturing facility at Panoli in
Gujarat. The company’s consumer products include wet wipes, medical
disposables, wound care, home care/ industrial wiping and private labeling.
1) Yarn- Ginni Filaments is one of the leading integrated manufacturers of cotton yarn, processed knit fabrics and knit garments in India. The company also produces spunlace nonwoven fabrics which are used in personal hygiene, healthcare and other technical textiles. Branded products under Ginni brand are distributed all over India.
Fabric -Single Jersey, Single Jersey
with Lycra , Rib, Rib with Lycra,
Interlock, Pique, Pique with Lycra, Gassed Single Jersey, Viscose Lycra ,Terry Fabric, Interlock
Polyester Fabric, Polar Fleece Fabric, Cotton Mélange Single Jersey, Cotton Mélange with Lycra.
2)
Textiles-
In order to get fully vertically integrated & be present from fiber to
fashion, Ginni Filaments has entered into garment business with its first unit
at Noida (near New Delhi, India).
Financials
and overall co:-
PROS:
Good Quarters posted, a turn-around indeed!
Expecting good results to continue. Promoters holding 61% of total equity.
Trading less than 1.5 Times of its BV. Mcap to sales is near 0.28 while giants
in this sector trading at 2!
CONS:
Average returning ratios with high debt! Huge
inventories showing incapability of the management of selling these goods. RM
cost is high for the co near 60% of total turnover!
Technical :-
Facing resistance at 28-30 zones. A close
above 30 for 2 consecutive days might give some boost. Volume on 27th feb 2017
was 3rd highest in last 6 months.
Triggers
:-
1) No effect
of demonetisation.
2) Export
oriented biz- dollar strengthening will help it.
3) Good Q3
and also posted good numbers this FY.
4) 9-month
EPS stands more than 300% of FY 2015-16 EPS.
5) High
Expectations from upcoming quarters.
My Take:-
Ginni can give decent returns in next
few months. Recommended @25 on 11th Jan on Moneycontrol, India’s No.1 Financial
Portal with MTT1:37.5 MTT2: 48 MTT3: 65.
UPDATE 25th July, 2018:-
Targets all completed!
Disc: - All
the info is based on the writer's own research/gathered from public domains.
The writer of this Blog is neither any advisor nor related to any brokerage
houses!! The writer might be himself invested in the stock after his own
research so the views might be biased. One must do their own research before
investing. The writer isn’t advertising any website for his own selfish use. The
writer of this blog won't be held responsible for any of your profit/loss in
your investment/trading career!
